With 2016 fast approaching, advisors are now planning year-end meetings with their high-net-worth clients. Because so many of these individuals support charities, many advisors will recommend a philanthropic vehicle as part of their overall wealth management strategy. For some advisors, the default choice is a donor-advised fund. After all, they’re fast, easy and solve the immediate need. Plus, they require minimal ongoing effort from the client to manage.

While DAFs are a great option, a private foundation could be a better choice. Unfortunately, a private foundation is often not considered unless the client specifically asks about it. That’s because many financial advisors believe that a private foundation is inherently expensive, complicated and time-consuming, both to set up and to manage. Many contend that, unless the client is going to fund it with at least $5 million, it just doesn’t make sense.

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